Austin Wood Products Case Study

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A Case Study on Austin Wood Products A Case Study Presented to the Faculty of the Ramon V. del Rosario College of Business Decision Sciences and Innovation Department De La Salle University - Manila In Partial Fulfillment of the Requirements for the Course SUPPMAN K31 By Herrera, Lorenzo V. 11224738 Kehyeng, Charise Jessica T. 11144394 Larracas, Danielle Dominique G. 11134917 Lim, Ma. Anna Emanuelle N. 11107669 Zialcita, Raphael Paolo Prof. Willy Cuason September 16, 2014 I. CONTENTS: Summary of Findings Background Information Problem Statement if there are any Analysis of Alternatives Detailed Recommendations Answer to Case Questions Learnings II.…show more content…
This then translates to a 50% chance of not having inventory available during job opportunities. Therefore, opportunity costs might occur. The indifference of the production managers' in these aspects of inventory control is alarming and should be acted upon. Austin Wood Products should also define their organizational structure more clearly in terms of its centralization, functions and duties especially in terms of the production department. Where in the purchasing agent reports to the VP of Finance, but it is supposedly under production since it is highly involved in this. The company has been functioning well in terms of generating profit and demand so far. However, there will be a 20% increase in demand for the next month of operations as predicted by management, and the production and supply management's problems may come as a problem they can no longer afford. III. BACKGROUND INFORMATION: The company, Austin Wood Products (AWP), was founded by Michael Price. Michael realized the opportunity for custom-manufactured doors during the 1980's and was able to ride the fast-growing building industry during that time in developing his business initially in his home garage. As the company grew, the company was able to relocate to a number of places (such as Belton, downtown Austin, current location- Guadalupe Road in Austin). The current plant site composed of 90,000 sq.ft. now facilitates production,
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